China continues to push onwards, capturing more and more export market share, expanding its wide-reaching trade influence across the globe, despite the US trade-restraint countermeasures.

Chinese exports rose to their highest level in over 6 months, expanding by an impressive 8.3% pace, toppling the 6% market expectation and almost doubling the 4.4% output of August of 2025. Outbound shipments from the Red Giant reached to shores of nearby ASEAN nations, Australia but also Europe, whereas exports towards its main rival, the United States, slumped by 27%.

More specifically, exports towards ASEAN nations saw an 15.6% increase, with the standout receiver being Vietnam, an emerging economy with technological ambitions and vibrant young talent, the European Union importing 14.2%, Taiwan 11%, Australia 10.7%, South Korea 7% and Japan by almost 2%.

Analysts point out the possible reason behind the strong performance being the limited impact from US tariffs on overall trade, showcasing that the Chinese are able to circumvent and find buyers for their mass production machine, remaining steadfast and solidifying their export dominance.

Observers point out that with this perpetual outperformance of the Red Giant, boosts morale and shores up more negotiation power for the nation, giving rise to prospects of a tougher stance in upcoming US-China trade negotiations.

Earlier last week, China unveiled wide-ranging global export controls on products containing even traces of certain rare earths, prompting Trump to fire back by threatening to cancel a planned in-person meeting with President Xi in November.

The President also announced plans to put an additional 100% tariff on Chinese goods, along with sweeping curbs on “any and all critical software”, causing a (short lived) meltdown in equity markets and spawning a mass selloff, before swiftly “toning down” his commentary.

Technical Analysis

S&P500 Chart – US Equity futures nosedive after Trump ratches-up tariff threats towards China

Resistance: 6775 (R1), 6900 (R2), 7000 (R3)
Support: 6600 (S1), 6500 (S2), 6350 (S3)